Consolidated Foods Corp. v. Commissioner
United States Tax Court
A State municipality issued $ 2 million of industrial development bonds to finance construction of a manufacturing facility. The municipality leased the facility for 25 years to Conso Fastener Corp., which paid semiannual rental payments equal to principal and interest due on the bonds.
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A State municipality issued $ 2 million of industrial development bonds to finance construction of a manufacturing facility. The municipality leased the facility for 25 years to Conso Fastener Corp., which paid semiannual rental payments equal to principal and interest due on the bonds. The actual construction cost of the facility was $ 178,506 less than the anticipated construction cost of $ 2 million; the resulting surplus of bond proceeds was credited against lease payments due in years immediately following completion of construction. Held, Conso Fastener Corp., an accrual basis taxpayer…
1Opinion of the Court
Consolidated Foods Corporation, Petitioners v. Commissioner of Internal Revenue, Respondent
Consolidated Foods Corp. v. Commissioner
Docket No. 4650-74
United States Tax Court
66 T.C. 436; 1976 U.S. Tax Ct. LEXIS 95;
June 14, 1976, Filed
Decision will be entered for the respondent.
A State municipality issued $ 2 million of industrial development bonds to finance construction of a manufacturing facility. The municipality leased the facility for 25 years to Conso Fastener Corp., which paid semiannual rental payments equal to principal and interest due on the bonds. The actual construction cost of the…
2Cases cited19 opinions
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- Louis Spitalny and Betty Spitalny, His Wife v. United States of America, William Erdwurm and Bart F. Erdwurm, His Wife v. United StatesCourt of Appeals for the Ninth Circuit · 1970
- Farr v. CommissionerUnited States Tax Court · 1948
- Sloane v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
- Your Health Club, Inc. v. CommissionerUnited States Tax Court · 1944
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